The Roundup: What Should You Do About the CFPB, State Attorneys Stepping Up Enforcement, and the State of Marketing Compliance
Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.
In this edition: What should you do about the turmoil at the CFPB, state authorities stepping up consumer protection efforts, Rodney Hood named acting comptroller of the currency at OCC, new FTC chair likely to keep up enforcement on auto-renewals, using compliance for stronger bank-fintech partnerships, and the state of marketing compliance.
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What Should You Do About the Turmoil at the CFPB? The Short Answer is: Nothing
The future of the Consumer Financial Protection Bureau (CFPB) is currently uncertain due to recent administrative changes. Following the dismissal of Director Rohit Chopra, the CFPB has experienced significant leadership shifts and a suspension of many of its activities.
Legal experts advise financial institutions to maintain their compliance programs and adhere to applicable federal laws, as the CFPB is not the sole regulatory authority they must consider. Additionally, state attorneys general and banking regulators may intensify their enforcement efforts to fill any perceived gaps left by the CFPB’s reduced operations. Institutions should remain vigilant and continue to prioritize consumer protection to uphold trust and avoid potential legal challenges.
State Authorities Stepping Up Consumer Protection Efforts
State authorities are taking a more active role in consumer protection as federal oversight from the CFPB weakens.
This means that businesses need to broaden their compliance efforts beyond federal regulations to include various state-level rules. Companies should thoroughly review and align their policies, especially those related to fees, lending, and disclosures, with the changing state regulations to ensure compliance.
Significant Stat: 29%: In a recent survey, 29% of respondents said that compliance monitoring technology services are among the top areas of their current spending. Read more
Rodney Hood Named Acting Comptroller of the Currency at OCC
The Department of the Treasury has appointed Rodney Hood as acting comptroller of the currency and first deputy comptroller of the Office of the Comptroller of the Currency.
In a statement, Hood vowed to work for an effective regulatory environment, adding he is committed to establishing a framework that “fosters innovation, expands financial inclusion, and ensures that all Americans have fair access to the financial services they need to thrive.”
New FTC Chair Likely to Keep Up Enforcement on Auto-Renewals
The new Federal Trade Commission (FTC) Chair is expected to maintain strong enforcement on auto-renewal practices, focusing on ensuring compliance with subscription transparency, user consent, and easy cancellation processes. The agency’s continued scrutiny aims to curb deceptive practices and promote clearer terms for consumers. Businesses should expect ongoing oversight and potential rule updates impacting subscription-based services.
Using Compliance for Stronger Bank-Fintech Partnerships
Increased regulatory scrutiny from organizations like the Federal Deposit Insurance Corporation (FDIC) has led banks to strengthen their vetting and continuous monitoring of fintech partners to mitigate compliance risks. This means that fintechs need to maintain initial and ongoing regulatory compliance. Failure to do so can result in delayed partnerships, regulatory actions, or even the termination of existing collaborations.
Experts recommend that fintechs establish robust operational compliance programs early on, ensuring they have a deep understanding of their products and clear compliance strategies. This proactive approach will enable stronger, more secure partnerships between banks and fintechs.
The 2025 State of Marketing Compliance
The 2025 State of Marketing Compliance Report offers a comprehensive analysis of current trends and challenges in marketing compliance for consumer finance companies. Key insights reveal that small compliance teams are increasingly relying on technology to enhance efficiency, with technological investments leading compliance budgets. Additionally, there’s a growing concern over third-party compliance risks. The report serves as a valuable resource for organizations aiming to benchmark their compliance practices and navigate the evolving regulatory landscape.
